Investing.com -- U.S. President Donald Trump is set to sign an order that will provide relief to automakers manufacturing vehicles domestically from a portion of his newly imposed 25% vehicle tariffs. The move is designed to allow these automakers some time to repatriate their parts supply chains, according to Commerce Secretary Howard Lutnick on Tuesday.
The new order will allow automakers to receive credits worth up to 15% of the value of vehicles assembled within the U.S. These credits can then be used against the value of parts they import, as explained by Lutnick to the press.
Furthermore, automobiles and parts that fall under the 25% Section 232 auto tariffs will no longer be subjected to other tariffs imposed by the Trump administration. This includes the 25% duties on goods from Canada and Mexico, as well as the 10% duties applied to most other countries.
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